An investor recently emailed wondering what technical tools he could focus on that would provide him with profits in Put Selling in 2016.
When investing through naked puts or credit put spreads there are no silver bullets that can be used all the time. This is why understanding stock selection is so important. I remember over the past couple of years many of the stocks mentioned on my public Yahoo Forum that ended up crushing many investors. Stocks like VALE SA which trades on New York under the symbol VALE was being heavily traded by many forum members at prices of $18 to $12. Today the stock is trading for $3.27. A strategy of selling in the money covered calls would have saved many investors from large losses who wanted to stay with that stock. Another good example would be RIM which is now BlackBerry Stock.
So while the investor who emailed in was seeking what technical tools to use, there are other aspects of investing that are just as important if not more important and Stock selection is the most important aspect of investing, especially when the goal is selling naked puts or credit put spreads for income.
This strategy article in response looks at the 5 technical tools I would choose if I have to use only 5 in 2016 but explains other strategies this investor should consider to be successful in 2016………the rest of this strategy article is for FullyInformed Members.
Getting Ready To Profit In 2016 – Investor Questions
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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